This case study assignment will reinforce concepts related to market segments, targeting, and positioning. In addition to these strategic components, the case will bring pricing strategy into the strategic planning process.
Clean Edge Razor is a ‘wet shave’ company that sells non-disposable razors (i.e., consumers buy replacement razors), very much like Gillette Fusion blades.
*As you review the case and prepare your case study submission, please keep the following discussion points in mind:
1. What are the dynamics of the non-disposable razor category? Is it stable, growing, or declining? Include numbers from the case. What is Paramount’s (company that sells Clean Edge) position in the industry (i.e., market share leader, etc.)
2. Be sure to identify, describe, and discuss the three price/quality price tiers (value, mainstream, premium). Notice the different names. What is happening in each of those price tier segments (i.e., growing, stable, declining)? In addition to the price/quality price segments, please discuss the ‘benefits sought’ segments (e.g., aesthetic shavers) in your discussion – these segments need consideration for assessing growth trends and whether to target the mainstream or premium segment.
3. The central issue, in this case, is how to position Clean Edge (the newest razor technology) in the mainstream vs. premium segment. Discuss the pros/cons of targeting the mainstream segment; do the same for the premium segment. Discuss the potential profits for both segments (premium vs. mainstream) – this will require using pricing, estimated sales volume (units), and costs (variable and fixed).
4. Make a recommendation based on your analysis. Be sure to include potential short-term consequences and long-term consequences of your decision. Marketing managers usually put more emphasis on short-term results over long-term results (short-term sacrifice with long-term growth). Please include these considerations in this case.
*Read this case in the attachment !!!
*A robust case study will be 5-7 pages in length and include cited sources to support your analysis.
*Please follow Assignment Rubric and Case Analysis template to write this paper, thank you.
Answer preview
As mentioned, the classification of the nondisposable razor and refill cartridge products relied on the price and quality of the products. Hence, this influenced the establishment of the value segment, moderate, and super-premium segment. Extensive product innovations implemented in the super-premium segment, including 5-blade technology, low-friction glide strips, lather bar, and low resistance blade coating, increased the growth. On this note, 25% volume sales in this segment resulted in a 34% dollar increase in 2009. Under the moderate segment, 43 percent volume sales contributed to a 44% dollar increase (Quelch & Beckham, 2011). Further, the value segment retail products amounting to 32% in volume leading to 22% sales in dollars. The increase and slight decrease in sales of the product based on each of the price tier segments resulted from the changing consumer behavior. Another consideration
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